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SK E&C Participates in Building Iran Power Plants Worth 3.4B Euro
Energy Project in Iran
SK E&C Participates in Building Iran Power Plants Worth 3.4B Euro
  • By Jung Min-hee
  • March 20, 2017, 01:30
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Korea’s land and infrastructure minister Kang Ho-in (center), SK E&C’s CEO Ahn Jae-hyun (second from the left) and Unit International Chairman Unal Aysal pose for a photo after signing a contract for Iran power projects in Istanbul, Turkey on March 17.
Korea’s land and infrastructure minister Kang Ho-in (center), SK E&C’s CEO Ahn Jae-hyun (second from the left) and Unit International Chairman Unal Aysal pose for a photo after signing a contract for Iran power projects in Istanbul, Turkey on March 17.

 

SK Engineering & Construction (SK E&C) will enter the Iranian energy market first along with winning a 3.4 billion euro (US$4.2 billion) worth project to build five combined gas-fired power plants by forming a team-up with a Turkish company.

The Korean builder SK E&C announced on March 7 that it signed a contract in Istanbul to purchase a 30 percent stake in UNIT International S.A., Turkey's energy giant, to secure the right for the Iran project and carry out the project jointly.

Under the contract, SK E&C will join the Turkish firm's ongoing project to build and operate five new combined gas-fired power plants in Iran.

The power plants to be built in five regions will have a combined generation capacity of 5,000 megawatts, making them Iran's largest privately developed power plants.

South Korea’s Land, Infrastructure and Transport Minister Kang Ho-in, who attended the contract ceremony, said, “I hope SK E&C’s participation in the Iranian energy project be a monumental work for the future’s infrastructure cooperation with Iran, “ adding, “The Korean government also shall support the project to be implemented successfully.”

SK E&C start building two power plants first next year, a 1200MW plant in Savah and another 880 MW one in Zahedan, and then continue to build the remaining three plants successively. The construction period is 30 months, aiming at a commercial operation in the second half of 2020.